SA: Zip acquires SA startup, Payflex; fuels its global expansion drive

Australian Stock Exchange (ASX)-listed Buy Now, Pay Later fintech, Zip, has acquired South African fintech startup, Payflex, with plans to expand across Africa.

Payflex was founded in 2018 to make product purchase seamless and accessible, without time wastage.

Excluding the addition of interest, the startup allows consumers to buy goods and pay later.

So far, the company affirms that its service has reached over 1,000 merchants online and 135,000 customers have used the Payflex platform, five times the customer base of 25,000 just a year ago.

Zip is leveraging this opportunity as a stimulus to thrive across Africa. Last year, the company also acquired US-based Quadpay to penetrate into the US market. Earlier this year, the company’s total transaction volume surged 176% year over year (YoY) and hit $5.8 billion.

Zip thrives in the digital retail finance and payments industry, offering a point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries.

The company has its reach in 12 markets across five continents and plans to ensure the growth of Payflex, expanding into other African markets with sizable underbanked, digitally savvy populations that will benefit from innovative payment solutions within a short time.

“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and CEO of Payflex.

Larry Diamond, managing director and CEO of Zip, pointed out that the company’s desire for global expansion started a while ago and has been working towards achieving this.

“We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with $5.8 billion in total transaction volume, and more than 7.3 million customers and 51,000 merchants around the world,” he said.

“The shift away from the unfriendly world of credit cards that was the genesis of Zip’s Australian business, and its proven to be a global phenomenon. Millennial and Gen Z customers are consistently demonstrating their appetite for the simpler, fairer payment options that Zip is providing. This global play supporting customers and global retailers alike provides a real point of difference as we strive to become the first payment choice and a trusted and innovative, global payments brand.”